12.12.202505:41:30UTC+00China 10Y Yield Extends Fall to 2-Week Lows

China's 10-year government bond yield has decreased to approximately 1.82%, marking its fourth successive decline and reaching a low not seen in over two weeks. This downturn coincides with the conclusion of the Central Economic Work Conference. During this pivotal two-day conference, the government laid out strategic plans to enhance domestic demand through a focus on consumption and initiatives aimed at boosting income levels in both urban and rural settings. Investment is poised for stabilization through increased central budget allocations, optimal utilization of local government bonds, and high-quality urban renewal projects. Authorities have also indicated that fiscal policy will remain proactive, and monetary policy will be moderately accommodative in 2026. Earlier in the week, the Politburo committed to fostering broader economic growth and domestic consumption in the coming year while exercising caution with stimulus measures.